4 Facts About Investing in a Condominium for the First time

Condominium photo shot from the bottom

Condominium photo shot from the bottomAs Metro Manila — and the Philippines as a whole — continues to do well economically, the demand for jobs continues to increase. In fact, it is more evident in particular cities because even people who live in the province (nearby or not) are moving in, with the hopes to look for a higher paying job in the capital.

That demand, along with the fact that condominiums have started to sprout like mushrooms in different parts of the metro, has made it a lot easier to find and invest in real estate. All you need is to get yourself a unit, advertise it to people who might be interested (families, young professionals, or bachelors/bachelorettes), rent it for a specific time (in a six-month or one year contract), and earn money.

If you want some passive income, it could be a wise move to invest in a condo. However, despite the variety of choices, it pays to be prepared when you make your first investment. Before signing a deal and securing that condo, Quezon City real estate experts noted that it is best to make sure that you have these fully understood and prepared:

1. Purpose

People buy a house and lot for different reasons, and buying a condo is no different. Knowing your purpose can help you decide which type of condo to buy (studio, 1BR, or 2BR) and where to buy (near your home so you can tend to your future tenant’s needs immediately or within a popular neighborhood).

Having a purpose can help you better understand the direction of your investment. In this case, it is you, wanting some passive income. The question is, “For what?”

2. Budget and Financing

Set aside a reasonable budget for your purchase. It is important to stick to it and know in what ways you can finance them (i.e. loans). Having the numbers straightened out before you actually sign the deal can help you achieve a more stable financial standing. You would not want to pursue that purchase if you know that you will just be buried in debt. Besides, if you are getting a mortgage for it, your lender would know if you are eligible enough to pay back the money you are planning to borrow every month.

Construction worker surveying the site

3. Developer

They sprout like mushrooms. But, like mushrooms, there are good condos and bad ones. Make sure you are working with reputable developers. In the Philippines, there are many of them like Rockwell Land Corporation, which you might need to do a little researching first to be sure that buying from them would be worth it.

After all, the last thing you would want is an unfinished building (with your unit among them) due to internal problems or lack of funding in the part of the developer.

4. Insurance

Accidents can happen anytime to anyone, even in the most secured condominiums. Therefore, it is important to invest in one that has insurance for theft, fire, and natural disasters. It is your right as an owner to be covered.

Once you fully understand the reality of owning a condo and accept the responsibility of having one, then it is time for you to finally make that purchase.